"We are at a turning point in the US-China economic partnership… The policies and practices that have shaped our relations over the past few decades will not suffice over the next few decades," Commerce Secretary Gary Locke said on Friday in a speech ahead of next week's visit of Chinese President Hu Jintao.

In view of 30-fold increase in US imports from China, he said, "It's not sustainable. Countries like China are beginning to realise that there are limits to purely export-driven growth. That's why we need a more balanced commercial relationship. And it is within our reach."

The US is doing its part to facilitate global adjustments by increasing private savings and exports, as well as taking steps to bring down its long-term fiscal deficits to a sustainable level.

"The Chinese leadership is making the rebalancing of its economy one of the cornerstones of its forthcoming five-year plan," the official said.

Locke said China's long-term success at addressing the concerns of international businesses will help determine whether it realises its economic vision–a vision in which China is a leader in innovation and a producer of higher-value goods and services.

There is a sobering side to US-China commercial relations, he said.

"When I talk to business leaders across America, they continue to express significant concerns – shared by business around the world, about the commercial environment in China – especially China's lax intellectual property protection and enforcement, lack of transparency in government decision making and numerous indigenous innovation policies that often preclude foreign companies from vying for the Chinese Government contracts.

"These policies mandate that products must be made, conceived and designed in China," Locke said.

"From our experience, there are usually five things that need to happen to turn these promises into reality. It starts with the easiest step: a statement of principle from Chinese officials that action will be taken to solve a market access issue.

"Next, that agreement has to be codified into binding law or regulations. Third, the law or regulation needs to be faithfully implemented by the central government. And fourth, it needs to be implemented at the local and provincial levels, he said.

Only after implementing all these things, final step will be an accepted way of doing business in China's commercial culture, Locke said.